SUGARCANE (CONTROL) ORDER, 1966
(1) This order may be called the Sugarcane (Control) Order, 1966.
(2) It extends to the whole of India 1[***].
(3) It shall come into force at once.
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1. Omitted vide G.S.R. No.620/Ess.Com./Sugarcane dated 8.4.1970.
In this order, unless the context otherwise requires:-
(a) crusher means a crusher drawn by bullock or any other animal and engaged or ordinarily engaged in the crushing of sugarcane and includes any equipment for manufacturing [***]2 shakkar, [***]2 rab or khandsari sugar,
(b) co-operative society means a cooperative society registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force relating to cooperative societies
54[(c) "factory" means any premises including the precincts thereof in any part of which sugar is manufactured by vacuum pan process and at its own option, ethanol is manufactured, either directly form sugarcane juice as a raw material or from molasses, including B-Heavy molasses, or both, as the case may be, but does not i
(1) The Central Government may, after consultation with such authorities, bodies or associations as it may deem fit, by notification in the Official Gazette, from time to time, fix the 51[fair and remunerative price] of sugarcane to be paid by producers of sugar or their agents for the sugarcane purchased by them, having regard to
(a) the cost of production of sugarcane
(b) the return to the grower from alternative crops and the general trend of prices of agricultural commodities
(c) the availability of sugar to the consumer at a fair price
(d) the price at which sugar produced from sugarcane is sold by producers of sugar
(e) the recovery of sugar from sugarcane and
The Central Government or a State Government, with the concurrence of the Central Government, may, by notification in the Official Gazettee, from time to time, fix the 51[fair and remunerative price] or the price of sugarcane to be paid by producers of khandsari sugar or their agents for the sugarcane purchased by them.
Provided that the 51[fair and remunerative price] or the price of sugarcane so fixed shall not exceed the 51[fair and remunerative price] of sugarcane fixed for payment by producers of sugar in the region.
18Provided further that no person shall sell or agree to sell sugarcane to a producer of khandsari sugar or his agent, and no such producer or his agent shall purchase or agree to purchase sugarcane, at a price lower than that fixed under clause 4.
17Provided also that the Ce
A producer of khandsari sugar or his agent shall pay, for the sugarcane purchased by him, to the sugarcane grower or the sugarcane growers cooperative society, either the 51[fair and remunerative price] of sugarcane fixed under clause 4, or the price agreed to between the producer or his agent and the sugarcane grower or the sugarcane growers cooperative society, as the case may be (hereinafter referred to as the agreed price):
Provided that
20(i) in the case of sugarcane delivered at any purchase centre and the same being transported to the khandsari unit by the unit owner by rail or by road using his own transport, a rebate shall be made from the 51[fair and remunerative price] or the agreed price, as the case may be, and such rebate shall be fixed by the Central Government having regard to the actual cost of transportation in the are
(1) Where a producer of sugar or his agent purchases any sugarcane from a grower of sugarcane or a growers cooperative society during each of the four successive years beginning on the 1st day of November, 1958, the producer shall, in addition to the 51[fair and remunerative price] of sugarcane fixed under sub-clause (1) of clause 3, pay to the grower or the cooperative society, as the case may be, an additional price, if found due, in accordance with the provisions of the 24[First Schedule] hereto annexed.
(2) Nothing in sub-clause (1) shall apply to the purchase of sugarcane:-
(a) where such sugarcane is used for the production of sugar in a newly established factory until the expiry of three years commencing from the year in which the factory is so established
(b) where the purchase is made
(1) The Central Government may, by order notify in the Official Gazette -
(a) reserve any area where sugarcane is grown (hereinafter in this clause referred to as reserved area) for a factory having regard to the crushing capacity of the factory, the availability of sugarcane in the reserved area and the need for production of sugar with a view to enabling the factory to purchase the quantity of sugarcane required by it
(b) determine the quantity of sugarcane which a factory will require for crushing during any year
(c) fix, with respect to any specified sugarcane grower or sugarcane growers generally in a reserved area, the quantity of percentage of sugarcane grown by such grower or growers, as the case may be, which each such grower by himself or, if he is a member of a cooperative society o
Notwithstanding anything contained in clause 6, no new sugar factory shall be set up within the radius of 15 Kms of any existing sugar factory or another new sugar factory in a State or two or more States:
Provided that the State Government may with the prior approval of the Central Government , where it considers necessary and expedient in public interest, notify such minimum distance higher than 15 Kms or different minimum distances not less than 15 Kms for different regions in their respective States.
Explanation 1: An existing sugar factory shall mean a sugar factory in operatin and shall also include a sugar factory that has taken all effective steps as specified in Explanation 4 to set up a sugar factory but excludes a sugar factory that has not carried out its crushing operations for last five sugar seasons.
&
(1) Before filing the Industrial Entrepreneur Memorandum with the Central Government, the concerned person shall obtain a certificate from the Cane Commissioner or Director (Sugar) or Specified Authority of the concerned State Government that the distance between the site where, he proposes to set up sugar factory and adjacent existing sugar factories and new sugar factories is not less than the minimum distance prescribed by the Central Government or the State Government, as the case may be, and the concerned person shall file the Industrial Entrepreneur Memorandum with the Central Government within one month of issue of such certificate failing which validity of the certificate shall expire.
(2) After filing the Industrial Entrepreneur Memorandum, the concerned person shall submit a performance guarantee of rupees one crore to Chief Director(Sugar), Department of Food & Public Di
The stipulated time for taking effective steps shall be two years and commercial production shall commence within four years with effect from the date of filing the Industrial Entrepreneur Memorandum with the Central Government, failing which the Industrial Entrepreneur Memorandum shall stand derecognized as far as provisions of this Order are concerned and the performance guarantee shall be forfeited:
Provided that the Chief Director(Sugar), Department of Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution, on the recommendation of the concerned State Government, may give extension of one year not exceeding six months at a time, for implementing the Industrial Entrepreneur Memorandum and commencement of commercial production thereof.
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The stipulat
If an Industrial Entrepreneur Memorandum remains unimplemented within the time specified in clause 6C, the performance guarantee furnished for its implementation shall be forfeited after giving the concerned person a reasonable opportunity of being heard.
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34. Inserted vide S.O.1940(E) dated 10.11.2006.
(1) Except the period specified in sub-clause (2) of clause 6B of this Order, the other provisions specified in clauses 6B, 6C and 6D shall also be applicable to the person whose Industrial Entrepreneur Memorandum has already been acknowledged as on date of this notification but who has not taken effective steps as specified in Explanation 4 to the clause 6A.
(2) The person, whose Industrial Entrepreneur Memorandum has already been acknowledged as on date of this notification but who has not taken effective steps as specified in Explanation 4 to the clause 6A shall furnish a performance guarantee of rupees one crores to the Chief Director(Sugar), Department of Food & Public Distribution , Ministry of Consumer Affairs, Food & Public Distribution, within a period of six months of issue of this notification failing which the Industrial Entrepreneur Memorandum of the concerned person s
The Central Government may, by order
35(a) direct that a crusher not belonging to a grower or a body of growers of sugarcane, or a power crusher or a khandsari unit shall not be worked except under and in accordance with a licence issued by the Central Government in that behalf
(b) direct that in a reserved area -
(i) no sugarcane shall be purchased for crushing by a power crusher
35(ii) no sugarcane or sugarcane juice shall be purchased for crushing or for manufacture of [***]36 shakkar, [***]36 rab or khandsari sugar, as the case may be, by a crusher not belonging to a grower or a body of growers of sugarcane or by a khandsari unit in the area
Provided that where such a permit is issued
The Central Government may, from time to time by general or special order, issue direction to any producer of khandsari sugar or owner of a power crusher, khandsari unit or crusher or the agent of such producer or owner or a cooperative society, regarding the purchase of sugarcane or sugarcane juice, production, maintenance of stocks, storage, price, packing, payment, disposal, delivery and distribution of sugarcane 39[***] and rab or khandsari sugar or the period of hours to be worked.
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39. Omitted vide S.O.1309(E)/Ess.Com./Sugarcane dated 31.7.2007.
40. Powers exercisable by States also vide G.S.R.1127/Ess.Com./Sugarcane dated 16.7.19.
The Central Government or any person authorized in this behalf by the Central Government, may, with a view to securing compliance with this Order or to satisfy itself or himself that this Order is complied with:
41(a) direct any producer of sugar to supply, within such period as may be specified, such information, returns or reports, as may be required relating to the recovery of sugar, duration of season, cost of manufacture, stocks of sugar or ethanol, price realized or to be realized for sugar or ethanol, molasses, press-mud and bagasse, amount realized or to be realized by way of refund of or exemption from excise duty or cane cess or purchase tax or by way of grant or subsidy given by the Central Government or a State Government, commission to cooperative society paid or to be paid, amount spent on approved schemes of sugarcane development, commission paid on sale of sugar or
(1) The Central Government or the State Government, as the case may be, may authorize 47[any officer not lower than the rank of a Police Inspector or Tehsildar or an officer of an equivalent rank] to enter and search any premises where any accounts, books, registers or other documents belonging to, or under the control of a producer of sugar or his agent, or an owner of a crusher, a power crusher or a khandsari unit or an agent of such an owner, are maintained or kept for safe custody
Provided that this clause shall not apply to accounts, books, registers or other documents relating to a crusher owned by a grower or a body of growers of sugarcane.
(2) Such person may seize any such accounts, books, registers or other documents if he has reasons to believe that a contravention of this Order has been or is being or is about to be committed
Every producer of sugar, producer of khandsari sugar, his agent or factory, every sugarcane grower or other person or cooperative society to whom or to which any order or direction is issued under any of the powers conferred by or under this Order shall comply with such order or direction.
(1) The Central Government may, by notification in the official Gazette, direct that all or any of the powers conferred upon it by this Order, shall, subject to such restrictions, exceptions and conditions, if any, as may be specified in the direction, be exercisable also by ,
(a) any officer or authority of the Central Government
(b) a State Government or any officer or authority of a State Government.
49(2) Where all or any of the powers conferred upon the Central Government by this Order had been delegated in pursuance of sub-clause (1) (b) to any officer or any authority or a State Government, every Order or direction issued by such officer or authority in exercise of that power may be amended, varied or rescinded by the State Government to whom the officer or authority is subordinate, ei
(1) The Sugarcane (Control) Order, 1955 and any Order made thereunder regulating or prohibiting the production, supply and distribution of sugarcane and trade or commerce therein are hereby repealed, except in respect of things done or omitted to be done under any such Order before the commencement of this Order.
(2) Notwithstanding such repeal, an Order made by an authority which is in force immediately before the commencement of this Order and which is consistent with this Order shall continue in force and all appointments made, prices fixed, licences and permits granted, and directions issued under any such Order and in force immediately before such commencement shall likewise continue in force and be deemed to be made, fixed, granted or issued in pursuance of this Order.
[ See Clause 5(1) ]
The amount to be paid on account of additional price (per maund or quintal of sugarcane) under clause 5 by a producer of sugar shall be computed in accordance with the following formula, namely:-
X X (P-T-S-R) - Y
100
Explanation : In this formula -
(1) X is the percentage cost of sugarcane to the total cost of sugar (excluding taxes) so determined by the Central Government from time to time on the basis of the recovery and duration of season of the factory for the year
Provided that the cost of sugar (excluding taxes) shall be worked out on the basis of the relevant schedule of costs given in the report of the Tariff Commission (1959
(See Clause 5A)
The amount to be paid on account of additional price (per quintal of sugarcane) under clause 5A by a producer of sugar shall be computed in accordance with the following formula, namely:-
X = R-L + A-B
2C
Explanation in this formula:
1. X is the additional price in rupees per quintal of sugarcane payable by the producer of sugar to the sugarcane grower.
12 R is the amount in rupees of sugar produced during the sugar year excluding the excise duty paid or payable to the factory by the purchaser.
13. L is the value in rupees, of sugar produced during the sugar year, as calcul
[See Clause 9(aa)]
Cane Price Arrears:
Name of the producer of sugar or his agent
Plant Short Name
Plant Code No.
Sugar Season
Fortnight ending date:
Particulars Fortnight To date
Total Gate/Own Estate/Outstation Gate/Own Estate/Outstation
1. Quantity of cane purchased (In quintals)
(a) Sugar rich variety
(b) Other varieties
(c) Total
2. Rate at which
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